1065, M2 line 1 vs. Schedule L, line 21

[DeWillie]

After entering my balance sheet, the information on Schedule L, line 21 Partners Capital Accounts, doesn't properly flow into Schedule M2, Analysis of Partner's Capital Accounts, line 1. 

When I select Open Forms, Schedule M2 doesn't exist under Form 1065 p5-6 and I can't seem to directly edit M2, line 1 in the standard forms view.  My little business doesn't require a balance sheet for federal returns, but my state (Oklahoma) does.

1) how do I directly edit Schedule M2, line 1 to correctly indicate the proper amount on Schedule M2?

2) does it even really matter if Schedule L and Schedule M2 don't agree as long as the net profit calculation is correct (which is is)?

Thanks in advance.

[Mike9241]

the IRS requires m-2 line 9 to equal schedule L line 21. if they don't balance there's an error somewhere in your return. If you manually plug the number then you won't be able to e-file and plugging the number might trigger an IRS inquiry.

not only should these lines be equal but also equal to the total of ending capital on all K-1s   we have no access to your return or information so we can't determine the source of the error.  

from 1065 instructions for m-2 line 9

Line 9. Balance at End of Year
The balance at the end of the year should equal the total of the amounts reported as the partners’ ending capital accounts in item L of all the partners’ Schedules K-1.

[hgoldencpa]

@Mike9241, you answered only part of @DeWillie 's question. The first part of @DeWillie 's question still needs an answer. Do you have any information about that? Thanks.

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When I select Open Forms, Schedule M2 doesn't exist under Form 1065 p5-6 and I can't seem to directly edit M2, line 1 in the standard forms view. My little business doesn't require a balance sheet for federal returns, but my state (Oklahoma) does.

1) how do I directly edit Schedule M2, line 1 to correctly indicate the proper amount on Schedule M2

Questions for Intuit: In general, how do we directly edit any part of Schedules M-1, M-2, etc.? Without this ability, please show which TT input lines can be used to accomplish this (as a less desirable workaround)? Is this documented anywhere?

[PatriciaV]

Schedule M-2 Line 1 is the total beginning capital balance shown on Schedule K-1 Worksheet, which itself is the total of all entries for each partner on this worksheet. The balance for each partner can be edited as long as the numbers are green (imported from last year) or blue (entered this year). Note this worksheet has an internal scroll bar to move between partners.

When working in Forms Mode, you can track the flow of numbers in the return by right-clicking on any box and choosing Data Source. Numbers in black are either brought over from another form or are calculated (and can't be changed). In general, boxes highlighted in yellow are direct input.

Schedules M-1 and M-2 (which always appear under Schedule L (balance sheet)) have Smart Worksheets above Line 1 where supplemental calculations are made. Some direct entries to these worksheets are allowed.

Additional Information:

• How do I manually fill out my tax forms in TurboTax Desktop? 
• What's the meaning of all the different colors in Forms Mode?

@hgoldencpa 

[DeWillie]

It took a bit to get back to my taxes, but I did figure out how to resolve this issue. I had to make a schedule K workksheet for each partner and I could enter the information on those worksheets.  That resolved my issue.